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Six big reasons we won’t see any new gTLD launches until Q3

Kevin Murphy, April 5, 2013, Domain Policy

ICANN’s announcement of a big media bash in New York on April 23, to announce the launch of new gTLDs, has gotten many people thinking the first launches are imminent.


We’re not going to see any new gTLD domains on sale until the third quarter at the earliest, in my view, and here are a few good reasons why.

April 23 is just a PR thing

ICANN has said that April 23 is primarily about awareness-raising.

Not only does it hope to garner plenty of column inches talking about new gTLDs — helping the marketing efforts of their registries — it also hopes to ceremonially sign the first Registry Agreements.

I think CEO Fadi Chehade’s push to make the industry look more respectable will also play a part, with the promotion of the Registrant Rights and Responsibilities document.

But there’s never been any suggestion that any strings will be delegated at that time, much less go live.

The contracts are still hugely controversial

If ICANN wants to sign a Registry Agreement on April 23, it’s going to need a Registry Agreement to sign.

Right now, applicants are up in arms about ICANN’s demand for greater powers to amend the contract in future.

While ICANN has toned down its proposals, they may still be unacceptable to many registries and gTLD applicants.

Applicants have some impetus to reach agreement quickly — because they want to launch and start making money as soon as possible.

But ICANN wants the same powers added to the 2013 Registrar Accreditation Agreement, and registrars are generally less worried about the speedy approval of new gTLDs.

ICANN has tied the approval of the RA and the RAA together — only registrars on the new RAA will be able to sell domains in new gTLDs.

Chehade has also made it clear that agreement on the new RAA is a gating issue for new gTLD launches.

If registries, registrars and ICANN can’t settle these issues in Beijing, it’s hard to see how any contracts could be signed April 23. The first launch would be delayed accordingly.

GAC Advice might not be what we’re expecting

GAC Advice on New gTLDs is, in my view, the biggest gating issue applicants are facing right now.

GAC Advice is an integral part of the approval process outlined in the Applicant Guidebook and ICANN has said many times that it cannot and will not sign any contracts until the GAC has spoken.

But what does that mean from a process and timing point of view?

According to the Applicant Guidebook, if an application receives GAC Advice, it gets shunted from the main evaluation track to the ICANN board of directors for consideration.

It’s the only time the ICANN board has to get directly involved with the approval process, according to the Guidebook’s rather complex flow-charts.

GAC Advice is not an automatic death sentence, but any application the GAC is unanimously opposed to stands a very slim chance of getting approved by the board.

Given that ICANN is has said it will not sign contracts until it has received GAC Advice, and given that it has said it wants to sign the first contract April 23, it’s clearly expecting to know which applications are problematic and which are not during the next three weeks.

But I don’t think that’s necessarily going to happen. The GAC moves slowly and it has a track record of missing ICANN-imposed deadlines, which it often seems to regard as irksome.

Neither ICANN nor the GAC have ever said GAC Advice on New gTLDs will be issued during next week’s public meeting in Beijing. If a time is given it’s usually “after” or “following” Beijing.

And I don’t think the GAC, which decided against holding an inter-sessional meeting between Toronto and Beijing, is remotely close to providing a full list of specific applications of concern.

I do think a small number of slam-dunk bad applications – such as DotConnectAfrica’s .africa bid – will get Advised against during or after the Beijing meeting.

But I also think the GAC is likely to issue Advice that is much broader, and which may not provide the detail ICANN needs to carry the process forward for many applicants.

The GAC, in its most recent (delayed) update, is still talking about “categories” of concern – such as “consumer protection” and “geographical names” – some of which are very broad indeed.

Given the limited amount of time available to it in Beijing, I think it’s quite likely that the GAC is going to produce advice about categories as well as about individual applications.

And, crucially, I don’t think it’s necessarily going to give ICANN a comprehensive list of which specific applications fall into which categories.

If the GAC decides to issue Advice under the banner of “consumer protection”, for example, somebody is going to have to decide which applications are captured by that advice.

Is that just strings that relate to regulated industries such as pharmaceuticals or banking? Or is it any string that relates to selling stuff? What about .shop and .car? Shops and cars are “regulated” by consumer protection and safety laws in most countries.

Deciding which Advice covered which applications would not be an easy task, nor would it be a quick one. I don’t think the GAC has done this work yet, nor do I think it will in Beijing.

For the GAC to reach consensus advice against specific applications will in some cases require GAC representatives to return to their capitals for guidance, which would add delay.

There is, in my view, a very real possibility of more discussions being needed following Beijing, just in order to make sense of what the GAC comes up with.

The new gTLD approval process needs the GAC to provide a list of specific applications or strings with which it has concerns, and we may not see that before April 23.

ICANN may get a short list of applications that definitely do have Advice by then, but it won’t necessarily know which applications do not, which may complicate the contract-signing process.

The Trademark Clearinghouse still needs testing

The Trademark Clearinghouse is already, in one sense, open for business. Trademark owners have been able to submit their marks for validation for a couple of weeks now.

But the hard integration work has not been done yet, because the technical specifications the registries and registrars need to interface with IBM’s TMCH database have not all been finalized.

When the specs are done (it seems likely this will happen in the next few weeks), registries and registrars will need to finish writing their software and start production testing.

ICANN’s working timetable has the TMCH going live July 1, but companies that know much more than me about the technical issues at play here say it’s unlikely that they’ll be ready to go live with Sunrise and Trademark Claims services before August.

It’s in everyone’s interests to get all the bugs ironed out before launch.

For new gTLD registries, a failure of the centralized TMCH database could mean embarrassing bugs and downtime during their critical launch periods.

Trademark owners and domain registrants may also be concerned about the potential for loopholes.

For example, it’s still not clear to some how Trademark Claims – which notifies registrants when there’s a clash between a trademark and a domain they want – will interact with landrush periods.

Does the registrant only get a warning when they apply for the domain, which could be some weeks before a landrush auction? If so, what happens if a mark is submitted to the TMCH between the application and the auction and ultimate registration?

Is that a loophole to bypass Trademark Claims? Could a registrant get hit by a Claim after they’ve just spent thousands to register a domain?

These are the kinds of things that will need to be ironed out before the TMCH goes fully live.

There’s a sunrise notice period

The sunrise period is the first stage of launch in which customers get to register domain names.

Lest we forget, ICANN recently decided to implement a mandatory 30-day notice period for every new gTLD sunrise period. This adds a month to every registry’s go-live runway.

Because gTLD sunrise periods from now on all have to use the TMCH, registries may have to wait until the Clearinghouse is operational before announcing their sunrise dates.

If the TMCH goes live in July, this would push the first launch dates out until August.

Super-eager registries may of course announce their sunrise period as soon as they are able, and then delay it as necessary to accommodate the TMCH, but this might carry public relations risks.

Verisign’s security scare

It’s still not clear how Verisign’s warning about the security risks of launching new gTLDs on the current timetable will be received in Beijing.

If the GAC reckons Verisign’s “concerns” are valid, particularly on the issue of root zone stability, ICANN will have to do a lot of reassuring to avoid being advised to delay its schedule.

Could ICANN offer to finish off its work of root zone automation, for example, before delegating new gTLDs? To do so would add months to the roll-out timetable.

First seven TMCH agents approved

Kevin Murphy, April 2, 2013, Domain Services

The Trademark Clearinghouse has listed its first seven approved trademark submission agents.

These are the companies that are able to secure bulk discounts for submitted marks to the TMCH.

The first seven are NetNames, Corporation Service Company, SafeNames, MailClub, Key-Systems, Net-Chinese, which are all domain registrars too, and the Law Offices of S.J. Christine Yang, which isn’t.

Holders of large trademark portfolios are also allowed to become agents in their own right, but most TMCH submissions are expected to be carried out via these third parties.

The full list is here.

The cost of submitting trademarks, if you’re an agent, can be worked out using the TMCH Cost Calculator.

Loophole gives trademark owners unlimited Clearinghouse records

Kevin Murphy, March 27, 2013, Domain Policy

Trademark owners will be able to add potentially thousands of strings to the Trademark Clearinghouse due to a recently introduced loophole, it emerged last night.

ICANN recently said that it will allow mark holders to add up to 50 strings related to their trademarks to their TMCH records, if the strings have been abused in the past.

It was one of the controversial “strawman” proposals that ICANN decided to adopt earlier this month.

Companies would be able to get protection for “mark+keyword” strings, for example, if a UDRP decision or court ruling had previously found that the strings had been cybersquatted.

The 50-string cap appeared to have been picked rather arbitrarily, but it turns out it’s more-or-less irrelevant anyway.

ICANN confirmed on its webinar for new gTLD applicants last night that the limit is 50 additional strings per entry in the Clearinghouse, not 50 strings per trademarked string.

What this means is that a company that has registered its trademark in multiple jurisdictions will be able to get 50 extra strings for each of those marks it enters into the Clearinghouse.

If Apple had a registered mark for “Apple” in the US and a registered mark for “Apple” in Bolivia, it would be able to submit both to the Clearinghouse and get an additional 100 “apple+keyword” records.

If it had the mark registered in 100 countries, it could put up to 5,000 more strings in the Clearinghouse.

Each string could be used to generate Trademark Claims notices, but not to secure registrations during Sunrise periods.

The apparent loophole and its implications were raised by Reg Levy of Minds + Machines during last night’s ICANN call.

In practice, the number of additional strings mark holders would qualify for would be capped by the number of trademark jurisdictions in the world and/or the number of UDRP decisions they’d won.

Few companies have secured more than a few hundred domains at UDRP to date, meaning it won’t be too difficult for trademark owners to get Trademark Claims protection for basically any previously cybersquatted string.

ICANN to pay $2 million to keep Trademark Clearinghouse “free” for registrars

Kevin Murphy, March 27, 2013, Domain Registrars

ICANN is putting its money where its mouth is when it comes to helping new gTLDs be successful, committing $2 million to keep Trademark Clearinghouse access “free” for registrars.

While TMCH pricing for trademark owners is now well-publicized, ICANN COO Akram Attalah last night revealed some of the fees for new gTLD registries and registrars.

Registries will have to pay a one-time fee of $5,000 per TLD to access the TMCH, he said.

That was reduced from $10,000 during talks with TMCH back-end provider IBM after ICANN promised to handle billing and administration, he said.

There’s also going to be a $0.30 fee for each domain that matches a TMCH record registered during Sunrise and Trademark Claims periods, he added. The specifics on this fee were a little fuzzy.

But registrars won’t have to pay a penny, it seems. Attalah said that ICANN will pay IBM $2 million to make sure the Clearinghouse is accessible and free for registrars.

“ICANN will pay $400,000 per year for five years to keep the TMCH up and running and that provides free access to all registrars,” he said on last night’s new gTLDs update webinar.

It won’t be completely free for registrars, of course.

Registrars will have to do some implementation work to support the new Trademark Claims and Sunrise specs, but the absence of fees gives them one less excuse to avoid the two rights protection periods.

Trademark Clearinghouse lowers prices

Kevin Murphy, March 21, 2013, Domain Services

The Deloitte-managed Trademark Clearinghouse has slashed its bulk submission prices in response to feedback from registrars.

A newly revised TMCH price list leaves the basic fees of $145 to $95 per mark per year untouched, but makes it much easier for large trademark owners and brand protection companies to qualify for discounts.

The system for securing bulk discounts is based on “Status Points” that accumulate as trademarks are submitted, with five pricing tiers available.

The changes mean submission agents need to rack up 1,000 points in order to become eligible for the first discount tier, instead of 3,000. The cheapest tier is accessible at 90,000 points instead of 100,000.

The TMCH has also doubled the number of bonus points awarded for submitting trademarks during the “early bird” phase, which runs until the first new gTLD sunrise period begins, making it easier to hit discount milestones.

TMCH Cost CalculatorAccording to the Trademark Clearinghouse Cost Calculator, which has been updated with the new numbers, savings could be substantial.

For example, a submission agent that submits 10,000 marks for five-year registrations during the early bird period will pay $5,232,125, which is $742,950 cheaper than under the old pricing scheme.

That would be an average cost of $104.64 per mark per year, compared to $119.50 under the old regime.

A listing in the TMCH is a prerequisite if a trademark owner wants to participate in new gTLD sunrise periods or take advantage of the Trademark Claims cybersquatting alert service.

We gather that the price reductions came largely as a result of feedback from registrars that plan to act as submission agents, rather than from trademark owners themselves.